What does it mean when people say that "everyone is already enlightened"?
It actually doesn’t mean much.
It’s one of the later realizations, and most people on the path aren’t anywhere near that, so this statement is, as usual, taken and co-opted by ego (or what’s left of it) to avoid the rest of the pain of its complete disappearance.
Only ego can see ego. Enlightened ones see no ego, they don’t perceive it. Either in themselves or in others, these things go hand in hand. If you don’t see your own ego, but see ego in other people, your own ego is just hiding from you.
So when you are truly enlightened, everyone becomes completely enlightened to you. And you also realize that you always have been, and they also always have been. But it doesn’t mean everyone suddenly becomes enlightened to *themselves**,* otherwise any kind of teaching or helping would become strictly impossible.
When you live in truth, there are no falsehoods to you. People say falsehoods, but you don’t perceive them as such, because it is true to them. So it’s still truth. There are just no falsehoods in the world, they disappear, they cease to be.
Are you still able to tell that what they think is true is only what they think at their current, say, situation? Sure! So, from that perspective, you may say that you know that they only pretend to not be enlightened, they’re as enlightened as you are, they’re kinda just playing a role, a game of pretense. It’s on top of what they are, deep down they’re absolutely the same as you, and even more so - deep down they know it.